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etermining Unit Costs, Variance Analysis, and Interpretation Happy Dog Company, a manufacturer of dog food,...

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Accounting

etermining Unit Costs, Variance Analysis, and Interpretation Happy Dog Company, a manufacturer of dog food, produces its product in 1,000-bag batches. The standard cost of each batch consists of 8,000 pounds of direct materials at $0.60 per pound, 48 direct labor hours at $13.25 per hour, and variable overhead cost (based on machine hours) at the rate of $15 per hour with 16 machine hours per batch. The following variable costs were incurred for the last 1,000-bag batch produced: Direct materials . . . . . . . . . . . . . . . . 8,300 pounds costing $4,731 were purchased and used Direct labor. . . . . . . . . . . . . . . . . . . . 45 hours costing $675 Variable overhead. . . . . . . . . . . . . . . $338 Machine hours used. . . . . . . . . . . . . 18 hours Required

b. For the last 1,000-bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead.

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